BANKING SERVICES EXAM GUIDE
QUESTIONS WITH CORRECT ANSWERS
If the rate of inflation is higher than the interest rate on your savings account, what
effect does this have? - ANSWER-consumers can save more money
The index used to calculate most cost of living adjustments is the _____. - ANSWER-
CPI
How often should you review your financial plan with a certified financial planner? -
ANSWER-prior to upcoming life-changing events
What are some services banks offer young investors to start saving? (Select all that
apply.) - ANSWER-direct deposit
automatic transfers
set up retirement accounts
What are some key factors that affect the return on investment for securities? (Select all
that apply.) - ANSWER-global economy
inflation
company performance
Unexpected inflation will: - ANSWER-hurt lenders
When is the best time to start planning for your financial future? - ANSWER-once you
get married
What is one of the main reasons banks should focus on customer service, which is a
contributing factor to bank profit? - ANSWER-to maintain long-term deposits
discount brokerage houses a company that has registered stockbrokers who will buy
and sell stocks for customers, at a reduced commission, and they do not offer financial
advice
exchange-traded funds ETF; an investment fund traded on stock exchanges
portfolio an individual's collection of investments - ANSWER-
Why are fewer customers entering local bank branches? (Select all that apply.) -
ANSWER-due to the sophistication of ATM machines
online banking
mobile phone apps
What distinguishes a traditional ATM from an intelligent ATM? - ANSWER-An intelligent
ATM has more functions than a traditional ATM.
, What is the benefit of mobile banking as compared to traditional banking? - ANSWER-
24/7 transaction processing
A traditional ATM costs more than an intelligent ATM. - ANSWER-false
A company that has registered stockbrokers who will buy and sell stocks for customers
at a reduced commission is called a _____. - ANSWER-discount brokerage house
What is the main function of the YNAB app? - ANSWER-to create a personal budget
How does personal financial software help to manage finances? - ANSWER-It
consolidates all financial transactions into one place to provide a snapshot of financial
worth.
What is the primary reason a consumer needs to walk into a bank branch? - ANSWER-
open a new account
What is a most likely reason an investor would use a DIY financial service? - ANSWER-
comparatively lower fees
How does a bank profit from installing more intelligent ATMs? - ANSWER-fewer staff
will be needed
Monitoring your finances includes which of the following? (Select all that apply.) -
ANSWER-calculating any outstanding loans
adding up all deposit accounts
What is an advantage of video tellers through an intelligent ATM? - ANSWER-saves the
bank money
Personal financial software can only be accessed from a personal computer. -
ANSWER-false
What is the difference between Mint.com and Quicken personal finance software? -
ANSWER-Mint.com data can be accessed anywhere, anytime.
What is one of the main confusing aspects when trying to hire a certified financial
planner? - ANSWER-The fee structure is different for each planner
The consumer price index is calculated by comparing the changes in a standard set of
products during a base year with _____. - ANSWER-the cost of the base-year standard
set of products at current prices
A certified financial planner must have three years of experience in addition to passing
an exam given by the CFP Board of Standards. - ANSWER-true
QUESTIONS WITH CORRECT ANSWERS
If the rate of inflation is higher than the interest rate on your savings account, what
effect does this have? - ANSWER-consumers can save more money
The index used to calculate most cost of living adjustments is the _____. - ANSWER-
CPI
How often should you review your financial plan with a certified financial planner? -
ANSWER-prior to upcoming life-changing events
What are some services banks offer young investors to start saving? (Select all that
apply.) - ANSWER-direct deposit
automatic transfers
set up retirement accounts
What are some key factors that affect the return on investment for securities? (Select all
that apply.) - ANSWER-global economy
inflation
company performance
Unexpected inflation will: - ANSWER-hurt lenders
When is the best time to start planning for your financial future? - ANSWER-once you
get married
What is one of the main reasons banks should focus on customer service, which is a
contributing factor to bank profit? - ANSWER-to maintain long-term deposits
discount brokerage houses a company that has registered stockbrokers who will buy
and sell stocks for customers, at a reduced commission, and they do not offer financial
advice
exchange-traded funds ETF; an investment fund traded on stock exchanges
portfolio an individual's collection of investments - ANSWER-
Why are fewer customers entering local bank branches? (Select all that apply.) -
ANSWER-due to the sophistication of ATM machines
online banking
mobile phone apps
What distinguishes a traditional ATM from an intelligent ATM? - ANSWER-An intelligent
ATM has more functions than a traditional ATM.
, What is the benefit of mobile banking as compared to traditional banking? - ANSWER-
24/7 transaction processing
A traditional ATM costs more than an intelligent ATM. - ANSWER-false
A company that has registered stockbrokers who will buy and sell stocks for customers
at a reduced commission is called a _____. - ANSWER-discount brokerage house
What is the main function of the YNAB app? - ANSWER-to create a personal budget
How does personal financial software help to manage finances? - ANSWER-It
consolidates all financial transactions into one place to provide a snapshot of financial
worth.
What is the primary reason a consumer needs to walk into a bank branch? - ANSWER-
open a new account
What is a most likely reason an investor would use a DIY financial service? - ANSWER-
comparatively lower fees
How does a bank profit from installing more intelligent ATMs? - ANSWER-fewer staff
will be needed
Monitoring your finances includes which of the following? (Select all that apply.) -
ANSWER-calculating any outstanding loans
adding up all deposit accounts
What is an advantage of video tellers through an intelligent ATM? - ANSWER-saves the
bank money
Personal financial software can only be accessed from a personal computer. -
ANSWER-false
What is the difference between Mint.com and Quicken personal finance software? -
ANSWER-Mint.com data can be accessed anywhere, anytime.
What is one of the main confusing aspects when trying to hire a certified financial
planner? - ANSWER-The fee structure is different for each planner
The consumer price index is calculated by comparing the changes in a standard set of
products during a base year with _____. - ANSWER-the cost of the base-year standard
set of products at current prices
A certified financial planner must have three years of experience in addition to passing
an exam given by the CFP Board of Standards. - ANSWER-true
